New York Exec Faces Jail Time for Underreporting Payroll

A New York construction company executive faces multiple felony charges after police say he underreported his payroll to avoid paying premium he owed for workers’ compensation insurance.

Carlos Ramos, owner of Seven Stars Construction Inc., was charged following a joint investigation of workers’ compensation fraud with the New York State Insurance Fund Division of Confidential Investigations.

Prosecutors say Ramos underreported payroll from from July 2003 through July 2007 to the New York State Insurance Fund.Investigators said the alleged scheme involved using a check cashing facility for off-the-books payroll.

The scheme shaved off workers’ comp payments of $195,000, authorities said.